WOSB and HubZone Program Overview

WOSB, EDWOSB & HUBZONEProgram Overview &Marketing

MARIA ASUELIMEN | MANAGING DIRECTOR| AMA CONSULTING

110104 SENATE DRIVE SUITE 208 LANHAM MD 20706 WWW.AMACONSULTONLINE.COM

History of the Women-Owned Small Business Federal Contract Program

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• In 2000, Public Law 106-554 established a women's procurement program to assist the government in meeting its 5% women-owned small business (WOSB) contracting goal.

• In 2007, first proposed WOSB program which included WOSBs in only 4 industry categories.• March 2010, the SBA released a second revised proposed program expanding the eligible NAICS

codes to 83 industries. It was implemented on February 4, 2011• Defense Authorization Act October 14, 2015, Sole Source Authority was implemented. This

legislation also removed the self-certification process, but the process is still be negotiated by the SBA

• February 2016 new WOSB and EDWOSB eligible NAICS codes where released

HISTORY OF WOSB/EDWOSB

Eligibility Requirements for WOSBs


Meet small business size standard for primary NAICS code and contract

At least 51% unconditionally and directly owned by women who are U.S. citizens*

The woman must manage the day-to-day operations

The woman must make the long-term decisions for the business

A woman must the hold highest officer position in the company

The woman must work at the business full-time during normal working hours

No minimum amount of time the business has been operational

*Community property laws are not considered when looking at ownership.

Requirements for WOSB and EDWOSB Contract Competitions


Contracting officers may have WOSB- or EDWOSB-only contract competitions if the contract meets the following requirements:WOSB EDWOSB

Industries • NAICS code assigned to contract solicitation is in an industry in which WOSBs are substantially underrepresented

(365 6-digit NAICS designated)

• NAICS code assigned to contract solicitation is in an industry in which WOSBs are underrepresented

(80 6-digit NAICS designated)

Rule of two • Contracting officer has reasonable expectation that 2 or more WOSBs will submit an offer

* Note: All EDWOSBs are WOSBs

• Contracting officer has reasonable expectation that 2 or more EDWOSBs will submit an offer

* Note: Not all WOSBs are EDWOSBs

Award price • Contract must be awarded at fair market price

A complete list of applicable NAICS codes can be found at

www.sba.gov/wosb

http://www.sba.gov/wosb

Eligibility Requirements for EDWOSBs Same requirements as WOSBs (on previous page) PLUS:

Personal net worth (assets minus liabilities) is less than $750,000 excluding:• Ownership in business and primary personal residence• Income reinvested or used to pay taxes of business• Funds reinvested in IRA or other retirement account*• Transferred assets within two years if to or on behalf of

immediate family member for select purposes**

Adjusted gross income average over three years is $350,000 or less excluding:• Income reinvested or used to pay taxes of business

Fair market value of all assets is $6 million or less.


* Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in recognition of special event

Note: SBA will look at a spouse’s finances if the spouse has a role in the WOSB/EDWOSB, has lent money to or provided financial support (including

credit or guarantee of loan) to the business. SBA may also look at

spouse’s finances if both spouses are in same or similar line of business and businesses share names, websites,

equipment and employees.

WOSB Federal Contract Program How to demonstrate eligibility: Self- or Third-Party Certification


There are two ways to demonstrate eligibility for the WOSB program:

• Self-certification with supporting documents, or

• Third Party Certification

with supporting documents

Self-Certification

Free Get DUNS Number, Register in the System for Award Management (SAM) www.sam.gov Compile and upload all required documents to the WOSB Repository www.certify.sba.gov Represent status in SAM

Third Party Certification Register in SAM as WOSB or EDWOSB Obtain certification from an SBA-approved

Third Party Certifier◦ US Women’s Chamber of Commerce◦ Women’s Business Enterprise National Council (WBENC)*◦ National Women’s Business Owners Council (NWBOC)◦ El Paso Hispanic Chamber of Commerce

Compile and upload all required documents to the repository Represent status in SAM *Does not perform economic disadvantage determinations

http://www.sam.gov/

http://www.certify.sba.gov/

How to Market the Program


The WOSB Federal Contract Program allows contracting officers to implement the set aside if:

The contracting officer believes the contract can be awarded at a fair and reasonable price.

The contracting officer has a reasonable expectation that two or more WOSBs will submit offers on a contract – the Rule of 2.

The WOSB fits into 83 qualifying Industry Groups, representing over 300 six-digit industry NAICS Code categories.

Sole Source Authority is now available under certain conditions.

What is Sole Source Authority?


Conditions for Sole Source:Is the contract in a WOSB/EDWOSB eligible NAICS

code?Is the contract (including options) valued at $6.5

million or less for manufacturing contracts or $4 million or less for all other contracts?

Can the contract be awarded to the WOSB/EDWOSB at a fair and reasonable price?

In the determination of the contracting officer, is there a reasonable expectation that there is only one WOSB/EDWOSB that can perform?

Market Research


Research the various departments/agencies to determine target◦ Past purchases◦ Forecasts◦ Locations

Make Marketing Plan◦ Which agencies to target◦ What opportunities/contractors to go after◦ Events to participate◦ Create marketing materials

Execute Marketing Plan◦ Go to events/networking◦ Visit targeted contracting folks regularly◦ Put Teams together


www.sba.gov/wosbEverything you want to know about the WOSB set aside program can be found on this

website

http://www.sba.gov/wosb

HUBZone EMPOWERMENT CONTRACTING PROGRAM Designed to simulate economic development/create jobs in urban and rural communities. Contracts benefits: competitive, sole source Higher SBA-guaranteed surety bonds on construction/service contract bids 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.

A 3% procurement goal imposed on agencies


HUBZone Certification Provides federal contracting assistance for qualified small business concerns located in historically underutilized business zones to:

Increase employment opportunities

Stimulate capital investment in those areas

Empower communities through economic leveraging and the “multiplier effect”


HUBZone Requirements Must be a SMALL business

Concern must be owed and controlled only by US citizens

The principal office of the concern must be located in a HUBZone, and

At least 35% of the concern’s employees must reside in a HUBZone,

And lived in HUBZone for 180 days or are Registered Voters in a HUBZone

Different rules apply for Tribal Governments, Alaska Native Corporations, Community Development Corporations and small agricultural cooperatives


HubZone Application Process Review Application Guideline, FAQ

Get DUNS, Register in SAM

Register in SBA GLS System https://eweb.sba.gov/gls

Submit application online

Gather required supporting documentation

Respond to SBA’s request to upload supporting documentation: Within 10 days


https://eweb.sba.gov/gls



HUBZone DOCUMENT REQUEST CHECKLIST Signed HUBZone Program Certification Signature Sheet PRINCIPAL OFFICE Deed, Lease/Rental Agreement or property records *Covers the date of electronic verification Utility Bill Covers the date of electronic verification List 35 PERCENT Official Payroll Covers the date of electronic verification HUBZone Maps of employee’s home address Valid (unexpired) Drivers License, DMV ID, or Voter Registration cards for each employee residing in a HUBZone

Most recent State and Federal Unemployment tax filing/report Total Employee List


OWNERSHIP AND CONTROL Birth Certificate, Current Valid U.S. Passport, or Certification of Naturalization, Trust, or Franchise Agreement (if applicable)

Corporation Articles of Incorporation Copies of stock certificates (front and back) Stock Ledger Corporate Bylaws and any amendments Certificate of Good Standing

Most recent Federal Personal Income tax return for all individuals that own 20% or more of the applicant firm, including all schedules and attachments, and W2’s if applicable


HUBZone DOCUMENT REQUEST CHECKLIST

HUBZone DOCUMENT CHECKLIST

Limited Liability Company (LLC)

Operating Agreement and any amendments

Articles of Organization and any amendments

Certificate of Good Standing

Partnership

Partnership Agreement and any amendments

Sole Proprietor

DBA (Doing Business As) or Trade Name Certificate

SIZE AND AFFILIATION

Most recent three (3) years of the Corporate Federal tax returns, including all schedules and attachments


Maintaining Hubzone Certification Recertification every 3 years

SBA Site Visits

No maximum amount of time in the program

Remain compliant with SBA’s regulations, at 13 C.F.R. § 126.200 for Hubzone Program


http://www.sba.gov/content/part-126-hubzone-program

http://www.sba.gov/content/part-126-hubzone-program

Marketing & Business Development

Know your customers. Become familiar with the procurement process (State, county and local governments as well as private sector companies).

Learn to speak the procurement language. Know your NAICS codes. Prepare and distribute a Capabilities Statement.


Tips from Prime Contractors Try, try, try again…then try again…

then try again…

Do your homework.

Don’t expect it to happen overnight.

Be willing to start small.

If you don’t get the work, ask why.

When you get the work…SHINE!


Contact us

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WOSB and HubZone Program Overview

Government & Nonprofit

Transcript of WOSB and HubZone Program Overview